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  • FIRST POST
    • crunch_time
    • By crunch_time 23rd Oct 16, 8:22 PM
    • 1,043Posts
    • 3,065Thanks
    crunch_time
    Learning to budget to make future adventures happen
    • #1
    • 23rd Oct 16, 8:22 PM
    Learning to budget to make future adventures happen 23rd Oct 16 at 8:22 PM
    Evening everyone!

    I've decided its time for a new diary after sort of losing steam with my old one.

    In September 2013 our debt peaked at £29k. With some luck, a vague budget, changing priorities (kids), and some significant salary increases we have now got it down to circa £13-14k.

    I have learned lots during the process but the thing that I feel is holding us back is our inability to stick to a budget (or, more accurately, create a realistic budget).

    So basically the grand plan is to smash this 'debt hangover' as the hubs and I call I, as soon as possible so we can start using the money we currently use to pay it off for the adventures we have been planning pretty much all our adult lives. And also the things we should be doing at our age to be financially savvy like overpay the mortgage, contribute more into pension pots etc etc.

    I love the support from the wonderful people on this forum and look forward to sharing this adventure with you all!

    More info to follow!

    Crunchy
    LBM June 2014. Original debt £23,555 vs Now £0 Paid off in April 2017.
    NEW DEBT: £7500 Now: £7500 Paid off £0 Long term savings £1240
Page 2
    • crunch_time
    • By crunch_time 25th Oct 16, 7:05 PM
    • 1,043 Posts
    • 3,065 Thanks
    crunch_time
    I've cut up my credit card!!!!!!!!!!!
    I'll start from the beginning.

    I have had a credit card since I was 18 (16 years! 16 years?) and first went to uni and, like the most people have been in a cycle of maxing it out and balance transferring for along time. In 2010 it was up to £6000 and after paying just the minimum payment for over a year, my credit card company wrote to me to say they could either withdraw the credit or I stopped using it and paid off a larger amount each month. Of course I accepted the latter, got it down to £4000 and then consolidated it into a £8500 loan along with a car, a laptop (that I am currently tapping away on) and a new wooden floor for our old house in summer 2013.

    I lived credit card free essentially for 3 years and managed to clear a lot of other dent in that time such as overdrafts from when I went back to uni the second time round.

    I applied for a new one in November 2013 as I needed some bits for my job which I could claim back for and needed to buy them online so wanted to stay safe.

    For the last 2 years I have received an annual statement from my bank saying I have spent £10,000 on my credit card that year (£10000!!!!!!) incurred around £150 interest but paid it all back.

    The interest is small so its not about that but I don't want to live my life like this. I want to have 'money in the bank' rather than rely on credit cards to fill the gap.

    Ok its not even 'relying' on them its the 'buy now, pay later' attitude. So, I buy, feel guilty and quickly pay it back. I get the balance back to zero, say the card is for 'emergencies' and then rack it up again. And the cycle begins again.

    No more, I have had enough. I want money to stay in my bank account or savings account and I save up for things.

    The card has been cut up. It will be paid off as the first priority and then cancelled.

    Having a low alcohol beer to celebrate. Rock and roll!!

    Crunch
    LBM June 2014. Original debt £23,555 vs Now £0 Paid off in April 2017.
    NEW DEBT: £7500 Now: £7500 Paid off £0 Long term savings £1240
    • mummytogirls
    • By mummytogirls 25th Oct 16, 8:47 PM
    • 5,611 Posts
    • 18,427 Thanks
    mummytogirls
    Loving the new diary and you're enthusiasm Crunchy

    Also loving the term 'debt hangover' this is so accurate!! xx
    Mummytogirls x

    £23164.32 - 12/12/10
    £6936.45 - 04/09/17 - 70.99% paid off
    • Seasidegal58
    • By Seasidegal58 25th Oct 16, 9:32 PM
    • 1,173 Posts
    • 6,596 Thanks
    Seasidegal58
    Yay on the execution of the credit cards!
    Finally Debt Free! - July 2016
    Finished Emergency Fund- £10,000 April 2017

    Next Scrimpy Goal - Save for New Kitchen!
    My debt free diary - " Paid off the £31,000 - BUT still scrimping!"
    • kirtsypoos
    • By kirtsypoos 25th Oct 16, 10:18 PM
    • 3,088 Posts
    • 13,766 Thanks
    kirtsypoos
    Happy new diary Crunchy

    Well done on cutting up the CC - onwards and upwards with your new plan!!
    £175/3000 OH BC(94.16% PAID)
    PAID VERY, Barclaycard x2, Vanquis, Natwest, O/D, Tesco & MBNA x2 PAID LBM 24/07/15 - Debt: £175/31010.23 (99.43% paid)
    Mortgage - £161,000.00 (2017 O/P £3191.73) PAYDBX 17 #006 - £17,910.81/14,539.71
    • Cailbhinn
    • By Cailbhinn 25th Oct 16, 11:20 PM
    • 88 Posts
    • 275 Thanks
    Cailbhinn
    That definitely the plan! The big start happened today....

    I CUT UP MY CREDIT CARD!!!
    Originally posted by crunch_time



    Unless you're mental like me and can remember all the numbers. Just call me rain man!
    Starting Debt (31 Oct 2016) - £12,956 | Current Debt (31 Oct 2016) - £12,956 (0% paid)
    • -taff
    • By -taff 26th Oct 16, 6:32 AM
    • 7,168 Posts
    • 5,159 Thanks
    -taff
    Well done

    I have to say, I'm not suggesting you buy YNAB or anything like that, just that that paticular system works for me. Another thing I didn't know which may sound obvious to most people is that it's an envelope system, again, as I never really budgeted before, just tracked what I was spending, I'd never even heard of envelope system, although my mother did have a jar system ....For knowing so much about some financial areas, I'm totally inadequate when it comes to budgeting knowledge
    • crunch_time
    • By crunch_time 26th Oct 16, 7:19 AM
    • 1,043 Posts
    • 3,065 Thanks
    crunch_time
    Well done

    I have to say, I'm not suggesting you buy YNAB or anything like that, just that that paticular system works for me. Another thing I didn't know which may sound obvious to most people is that it's an envelope system, again, as I never really budgeted before, just tracked what I was spending, I'd never even heard of envelope system, although my mother did have a jar system ....For knowing so much about some financial areas, I'm totally inadequate when it comes to budgeting knowledge
    Originally posted by -taff
    I've tried enveloping and again......cant seem to stick to it!

    I have a free trial with YNAB for a month so will see how that goes.

    Crunchy xx
    LBM June 2014. Original debt £23,555 vs Now £0 Paid off in April 2017.
    NEW DEBT: £7500 Now: £7500 Paid off £0 Long term savings £1240
    • crunch_time
    • By crunch_time 26th Oct 16, 7:31 AM
    • 1,043 Posts
    • 3,065 Thanks
    crunch_time
    Morning all

    Its nice to wake up and feel I don't have a credit card anymore. Although I do have it linked to my amazon account. Dangerous. Will sort it out but in my head I don't have a credit card anymore so ...no worries.

    It really was a daily struggle to control it for perceived 'emergencies' and opportunities.

    Everything I need is within me now.

    So I have done a draft budget for November. Husband gets paid on Friday and then I will get paid on the 19th. We have some extras this month to pay for so I'm going to dip into the money saved for the puppy (£600) as that is not happening until the spring.

    We have to pay for the following:

    - two lots of nursery fees for DD for Nov and Dec. They want them up front.
    - two lots of before and after school club fees for DS - Nov and Dec
    - fee for mortgage advisor - £200
    - We have just been approved for a new mortgage at the monthly sum of £613 however all the paperwork is going through so I'm budgeting a worse case scenario Nov monthly payment on the SVR for £825. Its all on track to be processed before the end of the month but have factored this in just in case.


    With is in mind we might be able to clear £400 - £500 of the credit card this month which would be super!! More if I only pay £613 for the mortgage!

    I will do my YNAB budget tonight in preparation.

    Happy hump day everyone!

    Crunchy
    LBM June 2014. Original debt £23,555 vs Now £0 Paid off in April 2017.
    NEW DEBT: £7500 Now: £7500 Paid off £0 Long term savings £1240
    • NeverUnderestimate
    • By NeverUnderestimate 26th Oct 16, 8:06 AM
    • 106 Posts
    • 173 Thanks
    NeverUnderestimate
    Sounds good crunch!

    I set off at the beginning of the month worrying things were going to be tight due to my work not paying me properly. Luckily all my bills came out on the 1st or in that first week. So I was able to physically see my balances in the bank for the rest of the month each time I checked.

    Any left over pennies I sweep into a separate account (to nearest 0.00/5.00) which builds up after time and every two weeks I'll use this as overpayment to debt. Every little helps.

    I've just checked my banking this morning and from being aware of my spends I'm near enough ending the month with approximately £200 of my budget left.

    I'm totally surprised by that to be honest but I'm not complaining. I'll most likely put half into my emergency fund and half towards debt again.

    Then the Budget restarts for November. Woohoo!!

    The years gone so quick.

    It's nice to see you've cut your credit card up. Can you not unlink it from your Amazon account?

    I used to buy books for kindle willy nilly with the one click and never realised how much I spent. I was reading 4/5 books a week.

    Woops.

    Have a good day xx
    Never underestimate the ability of what you can achieve.
    current debt
    £534.00/£12395.87
    since September 2016.
    • Brunette84
    • By Brunette84 26th Oct 16, 8:27 AM
    • 6 Posts
    • 81 Thanks
    Brunette84
    I've just subscribed to your thread. Looking forward to joining you on the journey to being debt free x
    • abba1772
    • By abba1772 26th Oct 16, 8:28 AM
    • 4,022 Posts
    • 12,329 Thanks
    abba1772
    Happy new diary .........go on you for cutting your card up xx
    NEXT TARGET HALIFAX CC WAS July 17 £3572.57 NOW £4536.82
    POAMAYC 2011 £6382.66 POAMAYC 2012 £5000.78
    POAMAYC 2013 £3480.04 POAMAYC 2014 £4085.14
    POAMAYC 2015 £7565.24 POAMAYC 2016 £8000.90
    POAMAYC 2017 £6797.54 / £6000
    • crunch_time
    • By crunch_time 26th Oct 16, 9:03 PM
    • 1,043 Posts
    • 3,065 Thanks
    crunch_time
    Sounds good crunch!

    I set off at the beginning of the month worrying things were going to be tight due to my work not paying me properly. Luckily all my bills came out on the 1st or in that first week. So I was able to physically see my balances in the bank for the rest of the month each time I checked.

    Any left over pennies I sweep into a separate account (to nearest 0.00/5.00) which builds up after time and every two weeks I'll use this as overpayment to debt. Every little helps.

    I've just checked my banking this morning and from being aware of my spends I'm near enough ending the month with approximately £200 of my budget left.

    I'm totally surprised by that to be honest but I'm not complaining. I'll most likely put half into my emergency fund and half towards debt again.

    Then the Budget restarts for November. Woohoo!!

    This is how I want to manage my money tbh. Cant believe I have wasted so much time for this light bulb moment.

    The years gone so quick.

    It's nice to see you've cut your credit card up. Can you not unlink it from your Amazon account?

    I will next time I log on.

    I used to buy books for kindle willy nilly with the one click and never realised how much I spent. I was reading 4/5 books a week.

    Woops.

    Wow! Wish I could plough through that many.

    Have a good day xx
    Originally posted by NeverUnderestimate
    Thanks Neverunderestimate. Comments in red.

    Crunchy xx
    LBM June 2014. Original debt £23,555 vs Now £0 Paid off in April 2017.
    NEW DEBT: £7500 Now: £7500 Paid off £0 Long term savings £1240
    • crunch_time
    • By crunch_time 26th Oct 16, 9:06 PM
    • 1,043 Posts
    • 3,065 Thanks
    crunch_time
    Evening all,

    YNAB budget done and I was right - if we can stick to the budget then that will be the first £450 towards my CC.

    Woohoo!

    Crunchy xx
    LBM June 2014. Original debt £23,555 vs Now £0 Paid off in April 2017.
    NEW DEBT: £7500 Now: £7500 Paid off £0 Long term savings £1240
    • crunch_time
    • By crunch_time 27th Oct 16, 9:58 AM
    • 1,043 Posts
    • 3,065 Thanks
    crunch_time
    Morning all!

    Budget all raring to go for husbands pay day tomorrow. I particularly love the fact that I have £100 for 'things I forgot to budget for.'

    I started to get ahead of myself by looking at December costs so I could see how long it would take to pay off my credit card but I stopped myself. This diary is not about forecasting, its about budgeting so that what I'm doing. One month at a time.

    Ive subscribed to the NST NOvember thread. I'm going to try and do the military version which is basically no spending during the week but budgeted spends at the weekend. Next to all our social and family outings in my diary I have written the budget next to them. I'm hoping to come under so any extra money can be thrown at the debt. And I'm saying NO to any more social invites unless they are cups of tea at peoples houses or play dates at the park.

    No extra money will be thrown at the credit card until the 27th November. All extra money will be transferred into one of our online savings accounts where it will stay until this date and that is a promise.

    Looking forward to getting started!

    Crunchy xx
    LBM June 2014. Original debt £23,555 vs Now £0 Paid off in April 2017.
    NEW DEBT: £7500 Now: £7500 Paid off £0 Long term savings £1240
    • crunch_time
    • By crunch_time 27th Oct 16, 12:42 PM
    • 1,043 Posts
    • 3,065 Thanks
    crunch_time
    Savings
    Dd is poorly so I'm currently being held hostage on the sofa watching the little mermaid. Bless her.

    The big Spanish bank and their ridiculous security questions made it very difficult for me to withdraw money from my isa today so I can be as up to date with childcare bills.

    I'm going to have to go to my nearest branch which is 20 miles away with my passport. So I'm going to withdraw all of it and then march swiftly to my bank and pay it all in there.

    It's a mix of savings for kids, emergency savings and dog savings so I shall assign it all to relevant pots.

    Isas don't mean that much anyway with the amount of debt we have and interest rates at the moment. I shall be sensible, keep £500 in an online savings account for emergencies, allocate the right amounts to my children's isas and the rest can go on debt.

    I look forward to this time next year when we can be looking at savings plans, investments, the whole thing.

    Looks like a no spend day.

    Crunchy x
    LBM June 2014. Original debt £23,555 vs Now £0 Paid off in April 2017.
    NEW DEBT: £7500 Now: £7500 Paid off £0 Long term savings £1240
    • reality_check
    • By reality_check 27th Oct 16, 7:05 PM
    • 699 Posts
    • 1,552 Thanks
    reality_check
    I am following your new diary, good luck. I can always relate to everything that you say, especially with the using credit cards to fill in the gap, and the buy now pay later attitude. I also should have a good disposable income, but of course debt prevents that, and I want to start paying down my mortgage too. You are so motivated and ready to go, looking forward to the updates xx

    p.s Don't get me started on the big Spanish bank, I had a nightmare phone call with them today and need to go into a branch tomorrow
    • crunch_time
    • By crunch_time 27th Oct 16, 8:59 PM
    • 1,043 Posts
    • 3,065 Thanks
    crunch_time
    I am following your new diary, good luck. I can always relate to everything that you say, especially with the using credit cards to fill in the gap, and the buy now pay later attitude. I also should have a good disposable income, but of course debt prevents that, and I want to start paying down my mortgage too. You are so motivated and ready to go, looking forward to the updates xx

    p.s Don't get me started on the big Spanish bank, I had a nightmare phone call with them today and need to go into a branch tomorrow
    Originally posted by reality_check
    Aw thanks reality check. I do follow your diary too. Must make time to comment more.

    During the endless hours of the little mermaid and then the polar express today, I stared at the screen thinking about how I spend money on my credit card to fix little 'issues' in my life. Like 'those clothes will make me feel better so I'll buy them now and then pay it back when I get paid next month.' And I do and then I lose track of all those little moments and I rack up the debt again.

    I also realise I make our. I'd get totally unrealistic and forget things just to meet a target or get rid of my credit card so I deny us essentials and then it all racks up again. The reality is my life won't start once I have become debt free, all that extra money is just going to go on the mortgage or other investments so I might as well start being realistic now as it will be easy in the long run.

    My life doesn't need 'fixing' as such I just need to stop turning to wine, self help books, clothes, sports stuff on credit cards to make myself feel valued and in control.

    Oohhhh so I have value and control issues.......

    That might mean why slimming world has not been working as I feel I have been treating myself with food and drink when things have got tough or I feel I deserve something.

    Ok I can totally flip this around.

    Sorry for the long post but in typing this out I think I may have found the root of my problem.

    Can anyone else relate?

    Crunch xx
    LBM June 2014. Original debt £23,555 vs Now £0 Paid off in April 2017.
    NEW DEBT: £7500 Now: £7500 Paid off £0 Long term savings £1240
    • kirtsypoos
    • By kirtsypoos 27th Oct 16, 10:15 PM
    • 3,088 Posts
    • 13,766 Thanks
    kirtsypoos
    Crunchy I totally relate to what you are saying.

    I have huge control and value issues which have caused big problems in relation to my debt and my weight so I feel completely sympathise. I'm still trying to work on triggers and coping mechanisms in relation to spending and eating, so let me know what works for you
    £175/3000 OH BC(94.16% PAID)
    PAID VERY, Barclaycard x2, Vanquis, Natwest, O/D, Tesco & MBNA x2 PAID LBM 24/07/15 - Debt: £175/31010.23 (99.43% paid)
    Mortgage - £161,000.00 (2017 O/P £3191.73) PAYDBX 17 #006 - £17,910.81/14,539.71
    • Seasidegal58
    • By Seasidegal58 27th Oct 16, 10:56 PM
    • 1,173 Posts
    • 6,596 Thanks
    Seasidegal58
    Ive subscribed to the NST NOvember thread. I'm going to try and do the military version which is basically no spending during the week but budgeted spends at the weekend. xx
    Originally posted by crunch_time
    Good on yer crunchy! I've wimped out and gone for the Civilian version!
    Finally Debt Free! - July 2016
    Finished Emergency Fund- £10,000 April 2017

    Next Scrimpy Goal - Save for New Kitchen!
    My debt free diary - " Paid off the £31,000 - BUT still scrimping!"
    • crunch_time
    • By crunch_time 28th Oct 16, 8:01 AM
    • 1,043 Posts
    • 3,065 Thanks
    crunch_time
    Pay day!!
    Morning diary!

    Seasidegal - I'm going to TRY to do the military. TRY being the operative word!... (wish my smilies worked).

    So husbands pay day today. £70 extra as for some reason he is still not paying his pension. He knows he needs to sort that out.

    All I have done on YNAB is put in his pay for November and transferred the right amount to the joint account. We have one spend tomorrow which will come out of spending money budget but I will put it as a transaction on the 1st Nov just to keep it even.

    Sains arrived last night with our order for the week ahead. LOADS of food so I announced to husband that under no circumstances will I be doing any top up shops. This is it.

    Oh and, if I understand it correctly, we have a small windfall coming our way from our mortgage redemption stuff which should be going ahead on the 31st which SHOULD mean that our monthly mortgage bill for November will be £613 rather than £825 so more money to my credit card. The money we will get back from the mortgage company will be £468!!!!!!!

    Technically I should pay that off my mortgage as in my head/spreadhseet I already had. But mortgages can wait now. Debt first.

    I'm raring to go to SMASH THAT CREDIT CARD ONCE AND FOR ALL!!!!!!!! GRRRRRRRR!

    Crunchy xx
    LBM June 2014. Original debt £23,555 vs Now £0 Paid off in April 2017.
    NEW DEBT: £7500 Now: £7500 Paid off £0 Long term savings £1240
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